Hack Attacks Are Corporate America’s Worst Nightmare
Another week, another cybersecurity incident, it seems.
The latest big company to be hacked? According to QSR, Pizza Hut found itself the victim of a hack attack on October 1 — alongside approximately 60,000 customers who had their credit card info exposed.
The restaurant group had a 28-hour-long “temporary security intrusion.”
But whatever label we want to use, it just reinforces my point of the last two months:
Cybersecurity stocks are only just getting started.
Hack Attacks Guarantee Cybersecurity Profits
Since I first started writing about this exciting sector on August 15 (see “Cybersecurity Profits Are Hiding in the Shadows”), the sector’s been on fire. Shares of the ETFMG Prime Cyber Security ETF (NYSE: HACK), which I recommended later that month, are up more than 4%, and more than 50% since February 2016.
Could there be larger gains ahead? I think so.
I happen to be bearish on the overall stock market at the moment. A broader sell-off may have the effect of pulling down share values in the cybersecurity sector in the short term.
But then again, when you have a potential $1 trillion flowing into the sector (as predicted by a recent study published by Cybersecurity Ventures), that’s a lot of investment money to be put to work.
While the risks of a well-thought-out hack have been well-known for years, corporate America seems to only be waking up to the nightmare possibilities now, in the wake of highly publicized news events, like this summer’s ransomware attacks and the history-making data theft on Equifax.
All that virtually guarantees that cybersecurity stocks will continue to have the “wind at their backs” for many quarters to come.
Jeff L. Yastine
Editor, Total Wealth Insider
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